VIII.  TRADE AND PROJECT FINANCING

THE COMMERCIAL BANKING SYSTEM IS DOMINATED BY THE
GOVERNMENT-OWNED BANCO COMMERCIAL DE MOZAMBIQUE (BCM), WHICH IN
1992 WAS SPUN OFF FROM THE GOVERNMENT'S CENTRAL BANK, BANCO DE
MOZAMBIQUE.  MANY PRIVATE COMPANIES PREFER TO USE ONE OF THE
THREE PRIVATE BANKS:  BANCO STANDARD TOTTA (AFFILIATED WITH
STANDARD CHARTERED BANK); BANCO PORTUGUESE DO ATLANTICO; AND
BANCO DE FOMENTO DO EXTERIOR (SEE CONTACT INFORMATION IN APPENDIX
B).

EXIMBANK DOES NOT PROVIDE COVERAGE FOR MOZAMBIQUE, THOUGH OPIC
WILL INSURE U.S. INVESTMENTS.  DUE TO MOZAMBIQUE'S LARGE TRADE
DEFICIT AND IMF-IMPOSED TIGHT MONETARY POLICIES, FOREIGN EXCHANGE
AND DOMESTIC CREDIT ARE EXTREMELY LIMITED FOR PRIVATE COMPANIES.
COMPANIES WHICH EXPORT FROM MOZAMBIQUE MAY RETAIN A PORTION OF
THEIR EXPORT EARNINGS IN HARD CURRENCY ACCOUNTS.

AT LEAST ONE U.S. BANK, EQUATOR BANK IN HARTFORD, CONNECTICUT,
PROVIDES TRADE FINANCE FOR TRANSACTIONS WITH MOZAMBIQUE.

MULTILATERAL DEVELOPMENT BANKS:

1. The International Bank for Reconstruction and Development
(IBRD), a member of the World Bank group makes long-term loans at
market- related rates primarily to developing nations.  The
International Development Agency (IDA), the soft loan window of
the World Bank, lends to the poorest of the development
countries.  Both the IBRD and IDA work to promote broadly based
economic growth and frequently focuses on structural adjustment,
sectoral reform and individual project lending and operate under
the same set of procurement guidelines.  Typically the World Bank
does not finance the entire cost of a project.  Rather, it
finances the components of a project purchased with foreign
exchange, which on average is about 40 per cent of the total
project cost.  Each project may cover a wide variety of sectors
and can involve anywhere from one to hundreds of separate
contracts providing export business opportunities for suppliers
worldwide.

CONTACTS:

U.S. Department of Commerce
Liaison to the U.S. Executive Directors Office
International Bank for Reconstruction and Development
1818 H. St., NW
Washington D.C.  20433
Tele:  (202) 458-0118
Fax:   (202) 477-2967

Office of Multilateral Development Banks
U.S. Foreign Commercial Service
U.S. Department of Commerce
Room H-1107
Washington D.C.  20230
Tele:  (202) 482-3399
Fax:   (202) 273-0927


2. The African Development Bank (AFDB), headquartered in Abidjan,
Cote d'Ivoire, is an international financial institution created
by Africans in 1963 to promote the economic and social
development of its member African countries.  Founded with
initial capital resources of USD 250 million, it has authorized
capital today of over USD 22.3 billion.  The bank belongs to the
African Development Bank Group (ADBG) which also includes the
African Development Fund (ADF) and the Nigerian Trust Fund (NTF).
The AFDB makes loans to development projects in 51 countries in
Africa.  The ADB provides development financing on concessionary
terms to the poorer African member countries.  The NTF was
established by the Government of Nigeria in 1976 to assist in the
development efforts of the poorer ADB members.  The ADFB has 21
non-regional members.  The United States joined in 1982.

CONTACTS:

U.S. Department of Commerce Liaison Office
to the U.S. Executive Directors Office
African Development Bank
Ave. Joseph Anoma
01 B.P. 1387 Abidjan 01, Cote D'Ivoire
Tele: (225) 21-46-16
Fax:  (225) 22-24-37


Office of Multilateral Development Banks
U.S. & Foreign Commercial Service
U.S. Department of Commerce
Room H-1107
Washington, D.C.  20230
Tele:  (202) 482-3399
Fax:   (202) 273-0927